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Brandon is an analyst at a wealth management fim. One of his dients holds a $7,500 portfollo that consists of four stocks. The investment allocation

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Brandon is an analyst at a wealth management fim. One of his dients holds a $7,500 portfollo that consists of four stocks. The investment allocation in the portfolio along with the contribution of risk from each stock is given in the following table: Brandon calculated the portfolio's beta as 0.838 and the portfolio's required return as 8.6090%, Brandon thinks it will be a good idea to reallocate the funds in his client's portfolio. He recommends replacing Atteric Incis shares with the same. amount in additional shares of Transfer Fuels Co. The risk-free rate is 4%, and the market risk premium is 5.50%. According to Brandon's recommendation, assuming that the maricet is in equilibrium, haw much will the portfolio's required retura change? (Note: Do. not round your intermediate calculations.) 0.9994 percentage points 0.8690 percentage points 0.6778 percentage points 1.0776 percentage poiets Analysts' estimates on expected returns from equity investments are based on several factors. These estimations aiso often include subjective and Judgmental factors, because different analysts interpret data in different ways. Suppose, based on the earnings consensus of stock analysts, Brandon expects a return of 6.24% from the portfolio with the new weights. Does he think that the requlred return as compared to expected returns is undervalued, overvalued, or fairly valued? Undervalued Overvalued Falty valued Suppose intead of replacing Atteric Incis stock with Transfor Fuels Co.s stock, Brandon considers replacing Attanic Inc.'s stack with the equal dolar allocation to shares of Company X stock that has a higher beta than Atteric inc: It everything else remains constant, the portfolio's beta would

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